Can the Posts survive in an integrated supply chain world?

Competitiveness in the e commerce market is forcing retailers to continuously tighten and integrate their supply chains in order to squeeze out waste.  First, they looked to minimize inventory costs by using point of sale information to position items in the most judicious way. Next, they integrated their independent channel stocks and inventories (e commerce, store and catalog sales) through multi-channel, then omni-channel retailing.

Now, retailers are working with carriers and third-party logistics providers (3PLs) to integrate their respective information systems in order to better control stock movements, further adding flexibility and responsiveness.  Carriers and 3PLs are investing heavily in integrated systems unified with retailers in order to stay competitive and relevant themselves.

To survive, postal service organizations must do the same: align with customers and develop systems that will integrate their operations with that of each major retailer.  Another possible step is for posts to acquire or strongly partner with 3PLs with such systems in order to get a leg up.  Without such supply chain integration, posts will slowly become irrelevant in the parcel business…